SANTOS vs.

SUBJECT PROPERTY: ISSUE: SEE ISSUES IN THE CHART

MORENO 25 streams in barrio San Esteban, Macabebe, Pampanga
RULING:
Read “The Case” HOW THE CASE STARTED/ BACKGROUND OF THE CASE:
portion first (starts @ Zobel family of Spain Contentions of Moreno SC RESPONSES
pg. 3 of this digest)  Former owners of a vast track of marshland in Macabebe, and Co. that said
Pampanga called Hacienda San Esteban streams are public:
Digest included the Hacienda San Esteban Not applicable because subject land is
Background of the These lands were administered and managed by the Ayala y Cia. was formerly a titled land and recognized by Spain and
Case as seen in the 1860-1924: marshland and being so, Ph govts to be so by virtue of recognition
full text because she  Ayala y Cia devoted the hacienda to the planting and it is not susceptible to and registration.
might ask from this cultivation of nipa palms appropriation. It
portion of the case  As a solution to the problem of accessibility into the therefore belongs to the
but gyst of the case hacienda Ayala y Cia. dug canals leading towards the State.
can be understood hacienda's interior where most of them interlinked
without it + with each other. The streams in question The SC looked into WON the streams were
Important parts are  By the gradual process of erosion these canals are natural streams. natural or artificial and examined evidence
in bold. acquired the characteristics and dimensions of They are tributaries of presented 1
rivers. public streams.
1924: shift from alcohol production  bangus production IN SUMMARY:
 Converted Hacienda San Esteban from a forest of nipa ARE THE SUBJECT Streams involved in this case were
groves to a web of fishponds. STREAMS ARE originally man-made canals constructed
 Cutting down the nipa palms, construction of dikes and NATURAL OR by the former owners of Hacienda San
closing of the canals criss-crossing the hacienda. ARTIFICAL? Esteban and that said streams were not
held open for public use.
1925 or 1926: Ayala y Cia. sold a portion of the hacienda to ---
Roman Santos This same conclusion was reached 27 years
 Ramon Santos transformed the swamp land into a ARTIFICAL/MANMADE earlier by an investigator of the Bureau of
fishpond Public Works whose report and
 In so doing, he closed and built dikes across several recommendations were approved by the
streams/ sapangs Director of Public Works and submitted to
 the Secretary of Commerce and
Because of the closing of the man made canals in Hacienda San Communications. (see background of the
Esteban, residents of the surrounding communities started case)
complaining
 Closing of the canals caused floods during the rainy season The streams have for Article 71 of the Spanish Law of Waters of
+ it deprived them of their means of transportation and their source public August 3, 1866, and Article 408(5) of the
fishing grounds rivers, therefore they Spanish Civil Code: channels of creeks and
cannot be classified as brooks belong to the owners of estates over
AND SO, Mayor Yambao of Macabebe went and opened some of canals. which they flow.
the closed dikes.
ARE THE SUBJECT The channels, therefore, of the streams in
When Roman Santos filed a case to preliminarily enjoin the STREAMS OF PRIVATE question which may be classified as creeks,

1
See after ruling
demolishment, the court ruled against him and he elevated the
case immediately to the SC.
---- in the meantime
Secretary of Commerce and Communications:
 Conducted his own investigation
 The aforementioned six streams closed by Roman Santos
were natural, floatable and navigable and were utilized by
the public for transportation since time immemorial
 Ordered Roman Santos to demolish the dikes across
said six streams BUT later on revoked his decision of
declaring that the subject streams were privately
owned because they were artificially constructed.
 Subsequently, by authority of an Act, he entered into a
contract with Roman Santos where the former
recognized the private ownership of the streams and
the latter turned over for public use 2 artificial canals
and bound himself to maintain them in navigable
state.
Ramon Santos then withdrew his appeal pending in the SC.
RE: portion of Hacienda San Esteban still Zobel-owned,
 Macabebe Municipal Authorities prayed for the opening of
the dikes and dams across certain streams in Hacienda
San Esteban.
 An investigation commenced
--- in the meantime,
The Attorney General, upon a query from the Secretary of
Commerce and Communications
 Rendered an opinion sustaining the Secretary's power to
declare streams as publicly owned under Sec. 4 of Act
2152, as amended by Act 3208.  Guagua and Antipolo Rivers and it is navigable by light
 watercrafts.
Investigator of the Bureau of Public Works
 Recommended the removal of the dikes and dams in
question.
--- And on the basis of said report,
Secretary of Commerce and Communications
 Rendered his decision ordering Ayala y Cia. to demolish
the dikes and dams across the streams named therein
OR PUBLIC belong to the owners of Hacienda San
OWNERSHIP? Esteban.
---
PRIVATE The said streams, considered as canals, of
which they originally were, are of private
ownership in contemplation of Article
339(1) of the Spanish Civil Code.
Under Article 339, canals constructed by the
State and devoted to public use are of public
ownership. Conversely, canals
constructed by private persons within
private lands and devoted exclusively for
private use must be of private ownership.
NOTE: Although the contract where the Panopio Report was conducted
was declared null and void, such declaration did not affect the findings
and such findings were used to determine the classification of the streams
RULING: Sapang Cansusu was declared public but all the other
streams, being artificial and devoted exclusively for the use of the
hacienda owner and his personnel, are declared of private
ownership. Hence, the dams across them should not be ordered
demolished as public nuisances.
----
Evidence presented that might be relevant:
1. Sapang Macanduling Maragul or Macanduli
 Enclosed in a Fishpond 12 of Roman Santos.
 Its banks cannot anymore be seen but some traces of them could
be noted by a row of isolated nipa palms.
 Its water is subject to the rise and fall of the tides coming from
 Its inlet is Antipolo River and its outlet is the Palapat River.
 It is closed by four dikes: One dike at its inlet along the Palapat
River; and, two dikes in between. T
 The exit channel at the Palapat River where the fishpond gate lies
has been filled up with dredge spoils from the Pampanga River
Control Project. 
2. Sapang Macabacle
 situated in Hacienda San Esteban.
Ayala y Cia., offered to admit public ownership of other
streams provided that the rest of the streams were declared
private.
--- Another investigation commenced (PANOPIO REPORT)
 Panopio submitted his report to the Director of Public
Works recommending that some streams enumerated
therein be declared public and some private on the
ground that they were originally dug by the hacienda
owners  these were duly acknowledged by the
parties involved (evidenced by a contract)
Secretary of Justice opinion
 Contract executed by the Zobel family and the
municipality of Macabebe is in valid becayse
1. The streams although originally dug by Ayala y Cia.,
lost their private nature by prescription
inasmuch as the public was allowed to use them
for navigation and fishing
2. At the time the Secretary of Commerce and
Communications approved the said contract, he had
no more power so to do, because such power under
Sec. 2 of Act 2152 was revoked by the amending Act
4175.
--- Despite such opinion, the streams in question remained closed.
--- They were opened for about 2 years anent to admin.
Investigations but were later on closed again  
THE CASE:
HOW IT STARTED: As aforementioned, Ramon Santos acquired
portion of Zobel’s hacienda from Ayala y Cia. There are 25 streams
in the hacienda that came with the purchase of such portion.
18 years later: Congress enacted Republic Act No. 2056:
 This Act stemmed from a speech delivered by Senator de
la Rosa, requesting the Secretary of Public Works and
Communications (SPWC) to proceed in pursuance of
Republic Act No. 2056 against fishpond owners in the
province of Pampanga who have closed rivers and
appropriated them as fishponds without color of title.
 Found in Fishpond 13.
 Its banks are still evident.
 30 meters wide + 2 meters deep and 1 ½ to 2 km long.
 Its source is Rio Cansusu.
 Channel is also obstructed by 4 dikes. One of them was
constructed by the engineers of the Pampanga River Control
Project. 
3. Sapang Balbaro
 Fishpond No. 13
 Runs from Canal Enrique near Rio Cansusu to Sapang Macabacle,
a distance of about 1/2 km.
 Passable by banca.
 The closures of this stream consist of two dikes located at each
ends on Canal Enrique and Sapang Macabacle. 
4. Sapang Cansusu
 Continuation of the Cansusu River.
 The Cansusu River opens at the Guagua River and allegedly ends
at the Palanas River in front of Barrio San Esteban.
 At a point near the mouth of Sapang Balbaro, the owners of
Hacienda San Esteban built a canal leading straight to one
end of Barrio San Esteban. And at the point where this Canal
joins Cansusu they built a dike across Cansusu, thus closing this
very portion of the river which extends up to Palanas River where
they built another closure dike. This closed portion, called
"Sapang Cansusu," is now part of Fishpond No. 1. Sapang Cansusu
is half a kilometer long and navigable by banc
On the same day, Benigno Musni and other residents in the
vicinity of Hacienda San Esteban petitioned the Secretary of
Public Works and Communications to open the following
streams: 
 Balbaro, Batasan Matua, Bunga, Cansusu, Macabacle,
Macanduling Maragul, Mariablus Malate, Matalabang
Maisac, Nigui, Quiñ orang Silab, Sapang Maragul and
Sepung Bato. 

The SPWC instructed Julian C. Cargullo to conduct an

investigation on the above named streams. And then a little later,
Musni and friends amended their petition to include 12 other
streams.

SPWC decision: ordered the opening and restoration of the

channel of all the streams in controversy except Sapang
Malauling Maragul, Quiñorang Silab, Nigui, Pepangebonan,
Nasi and Bulacus, within 30 days on the ground that said
streams belong to the public domain. 

Roman Santos  CFI: PETITION FOR INJUNCTION against the

Secretary of Public Works and Communications and Julian C.
Cargullo

Petition: Granted

SPWC ANSWER:
 Venue was improperly laid
 Roman Santos failed to exhaust administrative remedies
 Contract between Ayala y Cia.and the Municipality of
Macabebe is null and void
 Section 39 of the Act 496 excludes public streams from
the operation of the Torrens System. 

--- Procedural matters ensued until…

RTC DECISION: ALL THE STREAMS UNDER LITIGATION PRIVATE,

 The Writ of preliminary injunction restraining the SPWC
… is hereby made permanent." 

SPWC: APPEAL to SC